State-owned China FAW Group is planning to take a stake in fellow carmaker Guangzhou Automobile Group under an asset-restructuring deal, underscoring Beijing's push to consolidate the auto industry after years of rampant growth.

Guangzhou Automobile, or GAC, said it signed a preliminary agreement to acquire part of FAW's equity interest in an unidentified car-manufacturing joint venture.

The Guangzhou-based company plans to issue shares and raise additional funds to complete the transaction, which would make FAW its second-largest shareholder.

Although GAC didn't name the joint venture, analysts at both Citi and Bernstein said that FAW's venture with Toyota Motor could be a plausible candidate. The Japanese automaker also has a partnership with GAC in China.

GAC, Toyota and FAW didn't immediately respond to requests for comment.

Citi analysts see the GAC-FAW announcement as the first concrete move in officials' push to consolidate state-owned automakers.

Earlier this month, Chinese government agencies unveiled a five-year plan to overhaul the country's auto industry, pushing for reining in capacity expansion, tighter standards for new entrants, and more support for industry consolidation.

"The proposed GAC-FAW transaction appears well-aligned with these policy objectives," analysts at Bernstein said, viewing the development as positive for the an that continues to face significant pressure from overcapacity.

If it proceeds, the deal could mark the start of a broader wave of restructuring across the sector, Bernstein said.

GAC's Hong Kong-listed shares rose about 15% in early trade before paring gains to 5%. Trading in A-shares remained suspended.